Serial 5: Caro van Eekelen, Managing Director, ACCOR Netherlands


Caro van eekelen
Management director, accor hotels the Netherlands

By Lily lin

INTRODUCTION
In 1987 Caro van Eekelen received her Bachelor’s degree in Hospitality Management at the School for Hospitality Management (Hogere Hotelschool) in The Hague.  She joined Golden Tulip International in 1986, where she spent six years working on several hotel openings in the Caribbean, Ghana and France as Rooms Division Manager.  In 1992 Caro joined Disneyland Resort Paris for the opening and liked it so much that she ended up staying with the Company for 14 years.  She worked in operations and human resources management and eventually, as the Director of Performance & Operational Labor Management.  In 2006 Caro van Eekelen founded her own consultancy company, CVE, in Paris, specializing in hospitality management.  She advised companies in the hospitality sector on management and organizational issues, focusing on optimization of human resources.  From 2007 to 2009 she was the Chief Operating Officer at Adagio City Aparthotel in Paris, where she oversaw the Company’s expansion to 30 Aparthotels in European major cities.  Since July 2009, Caro van Eekelen is the Managing Director at Accor Hotels The Netherlands.

INTERVIEW 
You are the Chairwoman of the Jury at Mercure Cultuurprijs. Can you tell us a little bit more about this award?
Our objective is to improve brand awareness for Mercure hotels in The Netherlands.  The Mercure Culture Award this year is a tableware design competition.  Participants are required to design a tableware concept for the restaurant tables of Mercure hotels.  The winning design will be put into production and used in the Mercure hotels in the Netherlands. 
You came up through operations management.  How did your experience help you to reach your current position?

When I worked for Golden Tulip International, I opened a lot of hotels in different parts of the world. Due to those experiences, I speak English and French fluently, and of course Disneyland Paris was very keen on hiring me due to my opening experience and the necessary language skills.  My drive is to go for results with a team and have fun. In Operations Management, you need vision, which is translated into action.  You also need the ability to communicate your vision and explain the actions required.  Then, you make it fun to come to work.  In housekeeping where I started, for example, it is very important to create THE difference. Cleaning 17 rooms a day is no fun, but if you can motivate people to come to work every day to do their job, you can manage almost any team.  These experiences really helped me to develop leadership and management skills.  Secondly, I always look for a way to do things differently.  I take calculated risks; I like to think out of the box and convince people to initiate changes.  In general, I don’t like being in a status quo situation; I am very solution oriented, and I like action.   For some people it can be hard and tiring to work with me, because I go very fast, too fast.…   But, they also like the other side of me, and that is I am inspiring. 
I understand that you worked in a number of hotel openings.  What did you learn from these experiences?                                                                                                                                I did hotel openings in Aruba, Amsterdam, Paris and Ghana.  When you open hotels, you have to create everything; you have to form teams, recruit suppliers, and work with partners. You must convert what’s in your mind into reality, and at the same time, you must yield the best results before the opening-date deadline. Before the opening date, you must hire and train people, take reservations, clean the hotel, solve technical problems, and all these with the horrible deadline hanging over your head. You think you will never make it, but you always do.
You worked for Disneyland for 14 years.  How did you like working for Disneyland Paris?                     I liked it very much.  Before Disneyland Paris, I changed job every couple of years by moving to a different country. In Disneyland, I could change job without moving.  I started in housekeeping, and then I went to Security where I had to manage a team of 150 men.  After going through other jobs in HR and operations, I was given the full responsibility to set up a 15-month training program for new employees. I worked with the French Ministry of Labor, negotiated contracts with unions and worked on a special recognized certification process, which was approved by the French State. My last job at the Disneyland Resort Paris was Director of Performance and Labor. We scheduled 10,000 people on a daily basis and that included 250 temps per day, I also worked on optimization on recruitment forecasts, etc.
The current economic situations in Europe as well as in the US do not look promising.  Forecasts for the next couple of years also look rather deem. In your view, how would this influence hotel business in Europe and worldwide?                                                     Although we are getting bad news every day, we don’t see banks failing yet.  The [Dutch] government is trying to prevent banking problems from getting worse.  We do business as usual, but we are very attentive on any changes. We do see that some companies have restricted their travel budgets already. 
What do you think of the fact that Amsterdam now has the highest room rate in the world?
It’s true that Amsterdam and certain parts of the Netherlands do not have enough rooms. The fact that Amsterdam hotel rates are the highest in the world is not good for attracting people to Holland. Currently, the Amsterdam market is doing fine. It is the only city [in the Netherlands] that is comfortable pushing room rate rather than pushing volume.  Rotterdam is doing ok. The Hague faces some difficulties.  The rest of the markets in Holland are quite different.  They are facing difficulties in the current economic situation.

RM is about “maximizing revenue”. Demand increase does not necessarily lead to revenue maximization --- and revenue maximization does not necessarily guarantee profit maximization. In fact, it is entirely possible that at one point, the more revenue you generate or the more room you sell, the less profit you make. So, why is the hotel industry still concentrating on “revenue maximization” instead of “profit maximization”?
Exactly!  You have to first consider, what the contribution is from certain room rates.  Volume and average room price and costs are directly linked to your result. So you always have to check them.  On top of it, you cannot lower your price, when the competitors are benchmarking against your rates. At Schiphol, other hotels benchmark against our rates and undercut us.  In the long term rate-cutting is a killer, because bringing your rate back to the previous level takes a long time.  Only Early bookers get cheaper rates.

What is your vision for ACCOR Netherland?
Our vision is that ACCOR has a powerful brand portfolio, from luxury to economy brands.
In 2012 we will focus on the economy brands.  In fact, we are going to re-brand our economic brands:  Ibis, a widely recognized brand, will become our Mega Brand that will be subdivided into three brands:
(1) Ibis will stay as ibis hotels;
(2) All Seasons will become “Ibis Styles”;
(3) Etap Hotel will become “Ibis Budget”. 
In addition, we are going to stop with Hotel Formula 1 in the NL.

What about ACCOR’s luxury brands, such as Sofitel and Pullman?
In today’s travel industry, rich guests do not necessarily stay in luxury hotels.  We are seeing more and more affluent customers stay with the “new economy brands”.  The same trend is happening in other industries; for example, Porsche owners shop in IKEA or H&M.  Our economy brands generate 51% of the ACCOR GOP worldwide. 

Hotel Formula 1 is a rather successful economy brand in France.  Why do you want to discontinue it in Holland?
France is a big country, if you are just looking for a bed to rest, and an economy hotel situated on the roadside that offers convenience, Formula 1 is a good choice.  Holland is a small country. In Holland distances are much smaller. After a meeting or conference, you can always go home.  Therefore, Formula1is not as appealing in the Netherlands as it is in France.  we will replace Formula 1 with Etap in the Netherlands. 

Are you in favor of franchising business?
We want to double the number of hotels in Holland, of which we aim to have 20 franchisees.  .  The trend that individual hotels use ACCOR brand is increasing.  , ACCOR franchisees will be able to decrease commissions paid to the third party intermediaries.  We know that one half of our bookings come from our brand site and 30% of our bookings come from third party intermediaries.  The remaining reservations come from 800 number, booking with the hotel directly and walk-ins.
Our franchisees are very satisfied, due to their hotels’ increase in RevPar and average rate.   They accept that they have to invest to maintain brand images.

Is it difficult to manage a hotel company that caters to the luxury markets as well as economy markets?
We have knowledge to manage all types of hotels.  It’s all about positioning.  Quality and price relationship is important.  We need to know, what the guest is willing to spend and what she/he is looking for.

Is ACCOR primarily a business hotel?
We target the corporate market. Almost 90% of the international guests in ACCOR hotels in Amsterdam are business guests, whereas [in the rest of] Holland, approximately 80% of the [ACCOR] guests is business travelers.

As you go through your daily routine, and as the Managing Director ACCOR Netherland, what concerns you the most?
I am very concerned with quality of service; in fact, quality in general.  You have to mobilize your employees around quality.  [To improve quality], human resources strategy is very important; i.e., recruitment, training, career path, etc.  ACCOR does annual quality surveys among its employees worldwide, and it is called “Great Place to Work Survey”.  The Netherlands ACCOR was able to improve its ranking from the 21st place to the 14th place in just two years.

Why do you think ACCOR pick you to be the Managing Director?  There must be some things that you excel.  What are they?
I have a lot of experience setting up new things. I spent 19 years in France and as you know, ACCOR is a French company. I am persistent and result-oriented.  Of course, I am also Dutch. 

Revenue management is one of the major business and management developments in the hotel industry during the last 10+ years.  ACCOR recognizes the importance of revenue management.  So, what do you think of the concept of product development/improvement and revenue maximization?  Why aren’t revenue management and/or marketing heavily involved in product development?
In Accor, we do involve marketing, revenue management, as well as operations management.

What about the development of using social media to book a room --- and eventually with a mobile device?  Do you think this will be the future?
ACCOR already has an APP for Iphone and Blackberry. Android will soon follow and of course, we do have a mobile version of accorhotels.com.
Hotel business has image problems. We have to show that hotel business has changed! Today, it is very dynamic.  We forget to communicate this new image to today’s travelers and particularly in social media.  Personally, I tweet and I also use LinkedIn; it makes me more accessible.  But of course, accessibility and transparency go together.

How much value do you place on human judgment versus, for example, automated revenue management system?
Machines can do a lot of preparation work for us but in the end, we still have to rely on human common sense.

If you were to hire someone to work for you, what are the most important qualifications, such as knowledge and skills, education, work experience, personality, work ethic, etc., that this person must possess?
It depends on the job.  Definitely, I would hire all kinds of people.  I believe having a workforce that is multicultural and diversified is very important.  Even more important, I look for people who can complement each other’s strengths because this kind of workforce will give you much better results.

What advice would you give to inspiring students who are interested to enter the hotel industry?
In the beginning, do as many different things as possible.  Experience the work first.  For instance, I would never have planned to work in housekeeping or security.  By doing this you get to discover a different world. 
The world is changing so fast!  That is why you must be more flexible about your future. Finally, you must be willing to learn.  If you are willing to learn, you can achieve anything, and life never gets boring.

ACCOR is a French company.  Which aspect of the French culture do you find, as a Dutch person, most challenging to adjust to?
With my 19 years experience abroad, I am more European than Dutch.  When I first returned to Holland to take over ACCOR Netherland, I had to make many adjustments.  It was really challenging in the beginning but I am like a fish in the water now.

What is the most challenging task you are facing on your current job?
It is difficult to develop hotels.  We have some new hotels but we need more.  We are fighting to change our rather dusty image that ACCOR is a modern company to work for and to stay.

What is your proudest moment?
I am always proud when the teams work together and achieve goals they thought were impossible to achieve.

Career-wise, what will be your next step?
No clue!  We will see; I am always open to everything!  But I‘m not finished with my job here yet!



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